Oracle to buy $40 billion of Nvidia chips for OpenAI's US data center, FT reports
1. Oracle invests $40 billion in Nvidia chips for OpenAI's U.S. data center. 2. This deal highlights Nvidia's demand in AI infrastructure.
FAQ
Why Very Bullish?
Nvidia's substantial deal with Oracle confirms robust demand for its products, similar to previous contracts that significantly boosted stock prices in 2020. This investment may further increase market confidence, reflecting Nvidia's key role in the AI sector.
How important is it?
The scale of Oracle's investment reinforces Nvidia's market position and may drive future revenue growth, influencing investor sentiment positively. Such high-profile contracts can act as a catalyst, attracting further investments and boosting stock prices.
Why Long Term?
Long-term growth is expected as AI adoption continues to surge, reminiscent of other tech companies like Amazon who benefitted from early investments. Oracle's commitment indicates a growing reliance on Nvidia's technology in the expanding AI market.